Coal India challenges CCI's Rs 1,773 cr penalty, seeks stay on order

New Delhi: State-owned Coal India has challenged Competition Commission's move to slap Rs 1,773 crore penalty on the miner for unfair trade practices, seeking a stay on the order.

"We have filed an appeal before the Competition Appellate Tribunal. We have sought stay on the CCI order," Coal India Chairman and Managing Director S Narsing Rao told PTI.

The appeal is expected to be heard by Competition Appellate Tribunal (Compat) next week.

[caption id="attachment_1124855" align="alignleft" width="380"] Representational Image.

Reuters[/caption]

Competition Commission of India (CCI) had imposed Rs 1,773 crore fine on Coal India, the first major penalty by the regulator on a state-owned entity, for allegedly abusing its dominant position in fuel supplies.

The quantum of penalty -- Rs 1,773.05 crore -- is equal to three percent of the PSU's average turnover for the last three years.

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In its order on December 9 last year, CCI had said Coal India is operating independently of market forces and enjoys an undisputed dominance in the country over production and supply of non-coking coal.

According to the fair trade watchdog, Coal India abused its dominance and did not try to evolve/draft/finalise terms and conditions of FSAs through a mutual bilateral process withprocurers.

"... the same were sought to be imposed upon the buyers without seeking, much less considering, the inputs of the power producers," it had said.

Touching upon a host of issues related to coal supplies, including sampling and testing procedures, the regulator had also ordered Coal India to modify the fuel supply agreements(FSAs) after consulting stakeholders.

The ruling came against the backdrop of Coal India attracting flak for fuel shortages that have been hurting power generation in the country.

PTI